The Competition Commission of India (CCI) has given the green light to the demerger of ITC Ltd‘s hotel business into a separate entity.
Once the demerger is finalized, the stocks of ITC Hotels Ltd, a newly formed entity, will be listed on the stock exchanges.
The proposed merger involves the transfer of the demerged business to ITC’s wholly-owned newly established subsidiary, ITC Hotels.
Ownership Structure and Shareholding
After the demerger, ITC Hotels shares will be listed. ITC will retain a 40 percent stake, with the conglomerate’s shareholders holding the remaining 60 percent, as stated in a notice on the CCI website.
ITC boasts a diversified portfolio in India, encompassing FMCG, hotels, paperboards, paper and packaging, as well as agri-business.
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ITC stated in the notice that the proposed combination is merely an internal restructuring exercise and will not impact market dynamics in any way.
The Commission approves the demerger of Hotels Business of ITC Ltd to its wholly-owned subsidiary ITC Hotels Ltd,” as stated in a post by CCI on X.
In July 2023, the prominent conglomerate ITC announced the demerger of its hotel business, incorporating wholly-owned subsidiary ITC Hotels Ltd.
The company’s board has also given approval for the establishment of the wholly-owned subsidiary ITC Hotels Ltd, which will manage its hotels and hospitality business, it further stated.
Established in 1975, ITC Hotels, India’s leading chain of luxury hotels, has over 115 hotels in 80-plus destinations across six distinct brands.
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